Syllabus
GS Paper 2 – Governance – Government Policies
GS Paper 3 – PDS (objectives, functioning, limitations, revamping, issues of buffer stocks & food security)
Context
It is time to recognise and address the subject of male reproductive health issues in India
Source
The Hindu| Editorial dated 13th July 2024
The PDS impact on household expenditure
The Public Distribution System (PDS) in India is a crucial social security program designed to ensure food security by providing subsidized foodgrains to a large portion of the population. The recent Household Consumption Expenditure Survey (HCES) 2022-23 by the National Sample Survey Office (NSSO) provides fresh data to evaluate the effectiveness of the PDS and its impact on household expenditure patterns.
Evolution of PDS
- World War II: Initially implemented as a rationing strategy.
- Pre-1960s: Depended on food grain imports for distribution.
- 1960s Expansion: Agricultural Prices Commission and Food Corporation of India (FCI) were established to enhance domestic procurement and storage of food grains.
- 1970s: PDS became a global program for subsidized food delivery.
- 1992: Revamped Public Distribution System (RPDS) aimed at expanding reach to remote and disadvantaged areas.
- 1997: Targeted Public Distribution System (TPDS) introduced to focus on Below Poverty Line (BPL) and Above Poverty Line (APL) households.
- 2000: Antyodaya Anna Yojana (AAY) launched to provide highly subsidized food to the poorest families.
- 2013: National Food Security Act (NFSA) introduced individual entitlement of 5 kg per person per month for around 82 crore people.
PDS Working
- Commodities Covered: Wheat, rice, sugar, and kerosene are allocated for distribution.
- State Government Role: States are encouraged to include additional necessities like pulses, salt, candles, matchboxes, clothing, and school textbooks.
- Remote Areas: Provision of additional goods is important for communities in remote areas where traditional shopkeepers have a market monopoly.
- Civil Supplies Companies: Some states establish these companies to purchase and sell additional commodities at lower than market prices.
Impact of PDS on Household Expenditure
- Reduction in Food Expenditure
- Subsidized Food Grains: PDS provides food grains like rice and wheat at significantly lower prices, reducing the overall expenditure on these staples for beneficiary households.
- Free Resources for Other Needs: Savings on food grains allow households to allocate more resources to other essential items such as vegetables, milk, pulses, and proteins.
- Improved Nutritional Intake
- Diversified Diet: With reduced expenditure on staple food grains, households can afford a more varied and nutritious diet, improving overall health and well-being.
- Economic Stability
- Protection Against Inflation: PDS cushions the poor against price volatility and inflation, ensuring stable access to essential commodities regardless of market fluctuations.
- Income Effect: The financial relief provided by PDS acts as an indirect income boost, enhancing the purchasing power of beneficiary households.
- Enhanced Savings and Investment
- Increased Savings: Reduced expenditure on essential commodities allows households to save more, potentially leading to higher investments in education, health, and income-generating activities.
- Long-term Benefits: Greater savings and investments contribute to long-term economic stability and growth for the households.
Issues with Public Distribution System
- Eligibility Concerns: The definition of below-poverty-line status is based on income, excluding a substantial portion of the vulnerable population.
- Urban Bias: Initially confined to metropolitan areas, the PDS still struggles with timely and sufficient availability in rural regions.
- Rising Subsidy Costs: Since NFSA-2013, food subsidy costs have increased, and populist policies have lowered issue prices while procurement costs have risen.
- FCI Inefficiency: Centralized and bureaucratic operations have led to increasing financial costs and inefficiencies.
- Price Hikes: Government procurement reduces market availability, leading to price increases.
- Leakages and Corruption: Diversion of food grains to open markets and transportation losses are prevalent.
Shanta Kumar Committee Recommendations
- Encourage states with experience to procure for PDS directly from farmers.
- Focus FCI efforts on states with distress sales below MSP.
- Involve the private sector in procurement, storage, and distribution.
- Widen the procurement basket for better nutrient mix and crop diversification.
- Implement end-to-end computerization of FPS and GPS-based tracking of PDS goods.
Steps Taken to Improve Public Distribution System
- End-to-End Computerization: Improves efficiency and transparency, addresses leakages, and eliminates fake ration cards.
- Integrated Management of Public Distribution System (IM-PDS): Nationwide portability of ration cards under the One Nation One Ration Card (ONORC) Plan.
- Aadhaar Integration: Ensures legitimate beneficiaries receive the benefits.
- Ration Card Deletion: Deletion of 2.33 crore ration cards due to various reasons including digitization and Aadhaar seeding.
- Self-Help Groups: Encouraged to manage PDS operations at the local level, enhancing community participation.
Conclusion
The Public Distribution System remains a vital component of India’s strategy to combat food insecurity and improve the nutritional status of its population, especially among the economically disadvantaged. The HCES 2022-23 data offer valuable insights into the consumption patterns and economic behaviour of households benefiting from the PDS. By understanding these patterns, policymakers can refine and enhance social welfare programs to better address the needs of the population.
References
Related PYQ
‘What are the major challenges of Public Distribution System (PDS) in India? How can it be made effective and transparent? [ UPSC Civil Services Exam – Mains 2022]
Practice Question
Discuss the role of the Public Distribution System (PDS) in ensuring food security in India? [150 words]